Shares of Zhongji Innolight surged as much as 8% in early Monday trading after the company secured regulatory approval for a major Hong Kong listing valued at up to $8 billion.

The Shenzhen-based optical component manufacturer, which supplies critical hardware for data centers and telecommunications networks, saw investor enthusiasm spike following the Friday announcement of the green light from local authorities.

1 billion raised by electronics manufacturer Luxshare Precision earlier in July.

The proposed offering is set to become the largest initial public offering in Hong Kong this year, surpassing the $3.1 billion raised by electronics manufacturer Luxshare Precision earlier in July.

This scale of capital raising signals a significant shift in market sentiment, as global investors return to the region's equity markets with renewed appetite for large-cap Chinese technology listings.

The deal comes at a time when Hong Kong's stock exchange has reasserted itself as a global capital-raising hub.

Initial public offering and secondary listing proceeds on the exchange surged 84.3% year-on-year to $26.4 billion in the first half of the year, according to recent market data.